The Austria budget 2012 offers several infrastructural improvements such as increasing the heating and cooling networks in operation at the various districts. The main focus of the budget will be on achieving fiscal stability that will help the country become economically secure in the near future.
Highlights of Austria Budget 2012:
The 2012 Austria budget estimates that the national government will spend 73.58 billion euros and earn 64.41 billion euros in the upcoming fiscal.
The revenues from sales, corporate and income taxes are expected to go up in the same period.
If calculated as per the Maastricht criteria the federal budgetary deficit of Austria will amount to 2.6 percent of the GDP in 2012.
But, the aggregate fiscal deficit has been projected at 3.2 percent. It was earlier estimated at 3.3%.
The budget deficit for 2011 has been reduced to 3.6 percent owing to the good performance of the export sector and the unexpected increase in tax income. It had been previously pegged at 3.9 percent of the GDP.
In 2012 the public debt of Austria is supposed to amount to almost 74.6 percent of the GDP. The rate is supposed to go higher in 2013 fiscal but it should be reduced to 74.4 percent by 2015 fiscal. The debt servicing costs are also expected to go up in 2012.
Austria will allocate more funds on sectors such as education, energy conservation and research in 2012 fiscal.
Expectations from Austria Budget 2012:
Dr. Maria Fekter, the finance minister of Austria, has rejected suggestions that the national economy is in dire straits and that its triple A rating is in jeopardy. She has stated several positives of the national economy such as:
Exceptional employment record
Strong fiscal consolidation programs
Positive consumer demand
Steady public finances
Increasing tax revenues
Fekter opines that the country has the wherewithal to deal with the present economic situation around the world. She states that, while making the budget the policymakers will adhere to strategies for fiscal stabilization in the future as well.
The Austrian finance minister has further emphasized on the need for harsh measures for protecting overall economic recovery and believes that with the 2012 budget the administration has laid a solid base from which the country can keep growing in the future. She has also stated that the government will avoid total austerity as it could hinder the overall economic development.
Austria Budget 2012 Political Viewpoints:
During the budgetary debate the Austrian People s Party had stated in clear terms that it will oppose any new taxes. Its main argument is that taxes were already on the higher side and the country has, by and large, an equal distribution of income.
The Social Democrats, who are a part of the present government, stated that there should be a combination of steps for expenditure and revenue generation. It has asked for the initiation of a millionaire s tax and also called for a transactions tax that will help in bringing in more revenue apart from regulating the money markets.